NFIB Weekly News NFIB Weekly News

Leading the News

Dunkelberg: Most Small Business Owners Expect Supply Chain Disruptions To Continue Into 2022 (08/03/2021)

NFIB Chief Economist William Dunkelberg wrote in Forbes (7/28, Dunkelberg) that “with supply chains not working smoothly” due to the pandemic, “imbalances between the supply of goods and services, and the demand for those products are now center stage, creating an environment of rising costs and, subsequently, higher prices as those costs are passed on to consumers. Owners are reporting the highest frequency of price hikes for their products and services since 1971.” Dunkelberg said that “almost two-thirds” of those impacted by these disruptions “anticipate having to manage through for more than six months, extending into 2022.”

Business Climate

Labor Department Says US Labor Costs Increased By 0.7% In Second Quarter (08/03/2021)

Reuters (7/30) reported the Labor Department on Friday announced “the Employment Cost Index, the broadest measure of labor costs, rose 0.7% last quarter after gaining 0.9% in the January-March period,” which “raised the year-on-year rate of increase to 2.9%, the largest gain since the fourth quarter of 2018, from 2.6% in the first quarter.” Reuters reported the increase in “wages and benefits to attract workers” supports “views that high inflation could persist beyond this year amid supply constraints.”

Small Business Marketing

SBA Launches PPP Forgiveness Portal (08/03/2021)

The Wall Street Journal (7/28, Scott, Subscription Publication) reported the Small Business Administration (SBA) has launched its Paycheck Protection Program (PPP) forgiveness portal, which will allow the agency to offer direct forgiveness to borrowers with PPP loans up to $150,000.
Thomson Reuters (7/29, Tam) stated that “the new Direct Forgiveness portal will begin accepting applications from borrowers on August 4, 2021.” The article added that “borrowers may only submit their forgiveness application if their lender has opted in.” The SBA said the new process will “rush relief to over 6.5 million smallest of small businesses.” According to the article, “Loans of $150,000 or less represent 93% of outstanding PPP loans.”

Wages and Benefits

Jobless Claims Down 24,000 Last Week (08/03/2021)

The AP (7/29, Wiseman) reported the number of Americans filing for first-time jobless benefits fell 24,000 to 400,000 last week, “another sign that the job market continues to recover rapidly from the coronavirus recession.” The Wall Street Journal (7/29, Mena, Subscription Publication) reported that economists they surveyed expected claims to come in at 380,000. Bloomberg (7/29, Forte) reported the data signals “that the labor market continues to improve even as the delta variant of Covid-19 rages amid sustained vaccine hesitancy.”